CoreWeave Stock briefs when the company 23 billion US dollars Capex plan, 4 billion US

The CoreWeave (CRWV) chips were played on Thursday when investors digested the forecast for high investments and a new contract for $ 4 billion with Openaai.

The shares of the Nvidia-Backed (NVDA) AI Rechenzentrums company rose by up to 8% and declined by up to 9% during the trading session before the day declined by around 2.5%.

CoreWeave’s investment expenses, which came as part of his first earnings update as a stock corporation, made concerns in Wall Street. According to CoreWeave managers, the company expects 20 to 23 billion US dollars in 2025 to $ 18.3 billion to forecast by Wall Street -Analysten, according to Bloomberg Consensus.

The company is one of the largest owners of the graphics processing units of Nvidia and rents its data center capacity to large technology companies such as Microsoft (MSFT) and META (META) while trying to supply their AI ambitions with electricity.

The analyst from Da Davidson, Gil Luria, downgraded the stock on Thursday morning from neutral to an underperform -rating, whereby the “level of capital intensity is probably not endured”.

Luria also found the rising interest costs of coreweave or payments for the debts it used to finance his business. The company’s interest expenses rose by 549% to 264 million US dollars in the first quarter, more than the costs of $ 182 million per Bloomberg data forecast by Wall Street.

CoreWeave has a significant amount of debt – debt obligations worth around 12 billion US dollars with very high interest rates, says Luria. CoreWeave uses its debts that were borrowed against the Nvidia GPUS as collateral to buy more Nvidia chips.

“The risk is that this is a company that shows extraordinarily high interest rates to buy a product that devalues ​​very quickly in terms of its economic value,” Luria told Yahoo Finance in an interview on Wednesday.

CoreWeave CFO Nitin Agrawal said that the higher expenditure “is fundamentally due to an increased customer issue”.

Even with the DIP on Thursday, the stock has increased by more than 68%since its debut in March.

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Also on Thursday, CoreWeave said in a regulatory submission to the US Securities and Exchange Commission that she had concluded a contract for $ 4 billion in May in May. In addition, the KI startup has completed an engagement of 11.9 billion US dollars. According to CoreWeave, the Openai deals have contributed to its high sales prospects for the coming quarter and all year round, which transferred the expectations of Wall Street.

In a call to the analysts late Wednesday, CoreWeave managers said that the company in the second quarter of USA $ 1.06 to 1.1 billion and 4.9 billion US dollars up to $ 5.1 billion for the entire year than the analyst projections of 1.04 billion US dollars for the second quarter and 4.6 billion Year for the year after analysts.